3 Funds Favoring Wide-Moat Stocks
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Susan Dziubinski: Hi, I'm Susan Dziubinski from Morningstar.com. At Morningstar, we're fans of wide-moat companies: those companies with durable advantages that should allow them to thrive and keep competitors at bay for a decade or longer. Many money managers like these kinds of companies, too. Here are three highly rated funds focused on wide-moat stocks.
Robby Greengold: Harbor Capital Appreciation is a large-growth fund subadvised by Jennison Associates. The managers in charge are talented, and they have a long-shared history. But what makes this strategy stand out--what makes this investment team really stand out--is the team of dozen or so equity analysts who are deeply knowledgeable about their areas of expertise. The team puts together a portfolio of about 60 stocks that are routinely invested-in companies with competitive advantages. About 50 of those stocks, as of the most recent available portfolio, have been awarded either wide or narrow economic moat ratings by Morningstar's team of equity analysts. What you'll find here are companies that derive economic benefits, competitive advantages from, for example, their network effects. Visa and Mastercard are perfect examples. We like the strategy a lot. We've liked it for a long time, and we currently rate it Silver.
Susan Dziubinski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.